NRS 362.010 Definitions.
[Effective through November 24, 2014, and after that date unless the provisions
of Senate Joint Resolution No. 15 (2011) are approved and ratified by the
voters at the 2014 General Election.]

NRS 362.010 Definitions.
[Effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General
Election.]

NRS 362.015 Legislative
declaration. [Effective November 25, 2014, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.070 Contiguous
patented mines or mining claims: Performance of work on one mine.

NRS 362.090 One
affidavit may be recorded for labor on several patented mines or mining claims.

NRS 362.095 Method
of taxation of patented mine or mining claim used for purpose other than mining
or agriculture.

ASSESSMENT AND TAXATION OF NET PROCEEDS OF MINERALS

NRS 362.100 Duties
of Department. [Effective through November 24, 2014, and after that date unless
the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.100 Imposition
of excise tax upon mineral extraction and royalties; applicability; duties of
Department. [Effective November 25, 2014, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.105 “Royalty”
defined. [Effective through November 24, 2014, and after that date unless the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

NRS 362.110 Annual
statement of gross yield and claimed net proceeds. [Effective through November
24, 2014, and after that date through June 30, 2015, if the provisions of
Senate Joint Resolution No. 15 (2011) are not approved and ratified by the
voters at the 2014 General Election.]

NRS 362.110 Annual
statement of gross yield, claimed net proceeds and royalties. [Effective
November 25, 2014, and through June 30, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.110 Annual
statement of gross yield and claimed net proceeds; annual list of lessees.
[Effective July 1, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are not approved and ratified by the voters at the 2014 General
Election.]

NRS 362.110 Annual
statement of gross yield, claimed net proceeds and royalties; annual statement
of amount of royalties and lessees or sublessees. [Effective July 1, 2015, if
the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.115 Annual
statement of estimated gross yield, net proceeds and royalties; quarterly
reports; payment of estimated tax liability; use of statement by Department.
[Effective through November 24, 2014, and after that date through June 30,
2015, if the provisions of Senate Joint Resolution No. 15 (2011) are not
approved and ratified by the voters at the 2014 General Election.]

NRS 362.115 Annual
statement of estimated gross yield, net proceeds and royalties; quarterly
reports; payment of estimated tax liability; use of statement by Department.
[Effective November 25, 2014, and through June 30, 2015, if the provisions of
Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters
at the 2014 General Election.]

NRS 362.115 Annual
statement of estimated gross yield, net proceeds and royalties; use of statement.
[Effective July 1, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are not approved and ratified by the voters at the 2014 General
Election.]

NRS 362.115 Annual
statement of estimated gross yield, net proceeds and royalties; use of
statement. [Effective July 1, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.120 Computation
of gross yield and net proceeds; required reports. [Effective through November
24, 2014, and after that date through December 31, 2015, if the provisions of
Senate Joint Resolution No. 15 (2011) are not approved and ratified by the voters
at the 2014 General Election.]

NRS 362.120 Computation
of gross yield and net proceeds; required reports. [Effective November 25,
2014, and through December 31, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.120 Computation
of gross yield and net proceeds; required reports. [Effective January 1, 2016,
if the provisions of Senate Joint Resolution No. 15 (2011) are not approved and
ratified by the voters at the 2014 General Election.]

NRS 362.120 Computation
of gross yield and net proceeds; required reports. [Effective January 1, 2016,
if the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.130 Annual
preparation and mailing of certificate by Department; payment of tax due and
penalty; overpayments. [Effective through November 24, 2014, and after that
date through June 30, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are not approved and ratified by the voters at the 2014 General
Election.]

NRS 362.130 Annual
preparation and mailing of certificate by Department; payment of tax due and
penalty; overpayments. [Effective November 25, 2014, and through June 30, 2015,
if the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.130 Preparation
and mailing of certificate of amount of net proceeds and tax due; due date of
tax; overpayments. [Effective July 1, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are not approved and ratified by the voters at the 2014
General Election.]

NRS 362.130 Preparation
and mailing of certificate of amount of net proceeds and tax due; due date of
tax; overpayments. [Effective July 1, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.135 Appeal
of certification to State Board of Equalization; payment of tax pending
determination of appeal. [Effective through November 24, 2014, and after that
date unless the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

NRS 362.135 Appeal
of certification to Nevada Tax Commission; payment of tax pending determination
of appeal. [Effective November 25, 2014, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.140 Rate
of tax upon net proceeds. [Effective through November 24, 2014, and after that
date unless the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

NRS 362.140 Rate
of tax upon mineral extraction and royalties. [Effective November 25, 2014, if
the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.150 Liens
for taxes on proceeds of minerals. [Effective through November 24, 2014, and
after that date unless the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]

NRS 362.150 Liens
for taxes upon mineral extraction. [Effective November 25, 2014, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

NRS 362.160 When
tax becomes delinquent; collection of delinquency, penalty and interest; appeal
of imposition of penalty and interest. [Effective through November 24, 2014,
and after that date unless the provisions of Senate Joint Resolution No. 15
(2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 362.160 When
tax becomes delinquent; collection of delinquency, penalty and interest; appeal
of imposition of penalty and interest. [Effective November 25, 2014, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

NRS 362.170 Appropriation
to county of amount of tax, penalties and interest attributable to extractive
operations in county; apportionment by county treasurer; Department to report
amount received as tax upon net proceeds of geothermal resources. [Effective
through November 24, 2014, and after that date through June 30, 2015, if the
provisions of Senate Joint Resolution No. 15 (2011) are not approved and
ratified by the voters at the 2014 General Election.]

NRS 362.170 Appropriation
to county of amount of tax, penalties and interest attributable to extractive
operations in county; apportionment by county treasurer; Department to report
amount received as tax upon mineral extraction by geothermal operations. [Effective
November 25, 2014, and through June 30, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

NRS 362.170 Appropriation
to county of amount of tax, penalties and interest attributable to extractive
operations in county; apportionment by county treasurer; Department to report
amount received as tax upon net proceeds of geothermal resources. [Effective
July 1, 2015, if the provisions of Senate Joint Resolution No. 15 (2011) are
not approved and ratified by the voters at the 2014 General Election.]

NRS 362.170 Appropriation
to county of amount of tax, penalties and interest attributable to extractive
operations in county; apportionment by county treasurer; Department to report
amount received as tax upon mineral extraction by geothermal operations. [Effective
July 1, 2015, if the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

NRS 362.171 Establishment
and use of county fund for mitigation and school district fund for mitigation.
[Effective through November 24, 2014, and after that date unless the provisions
of Senate Joint Resolution No. 15 (2011) are approved and ratified by the
voters at the 2014 General Election.]

NRS 362.171 Establishment
and use of county fund for mitigation and school district fund for mitigation.
[Effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 362.175 Procedure
for removal of amount of tax and name from records of Department when tax
impossible or impractical to collect. [Effective through November 24, 2014, and
after that date unless the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]

NRS 362.175 Procedure
for removal of amount of unpaid tax and name from records of Department when
tax impossible or impractical to collect. [Effective November 25, 2014, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

NRS 362.180 Burden
of proof on taxpayer to show certification by Department to be unjust, improper
or invalid. [Effective through November 24, 2014, and after that date unless
the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.180 Burden
of proof on taxpayer to show certification or taxation by Department to be
unjust, improper or invalid. [Effective November 25, 2014, if the provisions of
Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters
at the 2014 General Election.]

NRS 362.200 Powers
of Department: Examination of records; hearings. [Effective through November
24, 2014, and after that date unless the provisions of Senate Joint Resolution
No. 15 (2011) are approved and ratified by the voters at the 2014 General
Election.]

NRS 362.200 Powers
of Department: Examination of records; hearings. [Effective November 25, 2014,
if the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.230 Penalty
for failure to file statements. [Effective through November 24, 2014, and after
that date unless the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

NRS 362.230 Penalty
for failure to file statements. [Effective November 25, 2014, if the provisions
of Senate Joint Resolution No. 15 (2011) are approved and ratified by the
voters at the 2014 General Election.]

NRS 362.240 Penalty
for false statements. [Effective through November 24, 2014, and after that date
unless the provisions of Senate Joint Resolution No. 15 (2011) are approved and
ratified by the voters at the 2014 General Election.]

NRS 362.240 Penalty
for false statements. [Effective November 25, 2014, if the provisions of Senate
Joint Resolution No. 15 (2011) are approved and ratified by the voters at the
2014 General Election.]

_________

NOTE: Sections 2 to 12, inclusive, of
chapter 449, Statutes of Nevada 2011, at p. 2691, have been codified as chapter 514A of NRS.

_________

GENERAL PROVISIONS

NRS 362.010Definitions. [Effective through November 24, 2014, and after
that date unless the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]As used in this chapter, unless the context
otherwise requires:

1. “Mine” means an excavation in the earth
from which ores, coal or other mineral substances are extracted, or a
subterranean natural deposit of minerals located and identified as such by the
staking of a claim or other method recognized by law. The term includes a well
drilled to extract minerals.

2. “Mineral” includes oil, gas and other
hydrocarbons, but does not include sand, gravel or water, except hot water or
steam in an operation extracting geothermal resources for profit.

3. “Patented mine or mining claim” means
each separate, whole or fractional patented mining location, whether such whole
or fractional mining location is covered by an independent patent or is
included under a single patent with other mining locations.

NRS 362.010Definitions. [Effective
November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]As used in this chapter, unless the context
otherwise requires:

1. “Extractive operation” or “operation”
means each geographically separate extractive location in this State where a
person engages in mineral extraction. The term includes, without limitation, a
mining operation defined in NRS 519A.080,
and for each such operation, its location is the location described in the plan
or amended plan filed by the person pursuant to NRS 519A.200 to 519A.260, inclusive.

2. “Gross yield from mineral extraction”
or “gross yield” means the gross yield from mineral extraction by each
extractive operation as determined and certified pursuant to the provisions of NRS 362.100 to 362.240,
inclusive.

3. “Mine” means an excavation in the earth
from which ores, coal or other mineral substances are extracted, or a
subterranean natural deposit of minerals located and identified as such by the
staking of a claim or other method recognized by law. The term includes,
without limitation, a well drilled to extract minerals.

4. “Mineral” includes, without limitation,
oil, gas and other hydrocarbons. The term does not include sand, gravel or
water, except hot water or steam in an operation extracting geothermal
resources for profit.

5. “Mineral extraction” means any act,
process, system or method by, through or from which ores, coal or other mineral
substances are extracted. The term includes, without limitation, the use of a
well drilled to extract minerals.

6. “Net proceeds from mineral extraction”
or “net proceeds” means the net proceeds from mineral extraction by each
extractive operation as determined and certified pursuant to the provisions of NRS 362.100 to 362.240,
inclusive.

7. “Patented mine or mining claim” means
each separate, whole or fractional patented mining location, whether such whole
or fractional mining location is covered by an independent patent or is
included under a single patent with other mining locations.

8. “Royalty” means a portion of the
proceeds from mineral extraction which is paid for the privilege of extracting
the mineral. The term does not include:

(a) Rents or other compensatory payments which
are fixed and certain in amount and payable periodically over the duration of
the lease regardless of the extent of extractions; or

(b) Minimum royalties covering periods when no
mineral is extracted if the payments are fixed and certain in amount and
payable on a regular periodic basis.

9. “Tax upon mineral extraction” means the
excise tax upon mineral extraction imposed and collected pursuant to the
provisions of NRS 362.100 to 362.240,
inclusive.

10. “Tax upon royalties” means the excise
tax upon royalties imposed and collected pursuant to the provisions of NRS 362.100 to 362.240,
inclusive.

NRS 362.015Legislative declaration. [Effective November 25, 2014, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]The
Legislature hereby finds and declares that:

1. Within the State of Nevada, there are
many valuable yet nonrenewable and finite mineral resources.

2. The extraction of minerals from the
State of Nevada is an important economic activity that is essential to the
prosperity of this State and the Nation.

3. Although beneficial, the extraction of
minerals from the State of Nevada comes with various environmental and
ecological impacts.

4. For the protection and benefit of the
public’s health, safety and welfare, this chapter imposes, for the privilege of
engaging in mineral extraction in the State of Nevada, an excise tax upon
mineral extraction by each extractive operation and upon all royalties paid by
each extractive operation.

5. This chapter does not impose an ad
valorem or property tax upon the value of the mineral extracted or the gross
yield or net proceeds from the mineral extraction by each extractive operation
or the royalties paid by each extractive operation.

(Added to NRS by 2013, 3120,
effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General Election)

ASSESSMENT OF PATENTED MINES AND MINING CLAIMS

NRS 362.030County assessor to assess surface of patented mines and mining
claims; exceptions.The county
assessor shall assess the surface of each patented mine and mining claim in the
county for which an affidavit was not filed pursuant to NRS
362.050, 362.070 and 362.090
and return the assessment as required by law.

NRS 362.040Exclusion of assessment from roll.Upon
receipt of an affidavit from the county recorder pursuant to NRS 362.050 stating that at least $100 in development
work has been actually performed upon the patented mine or mining claim during
the federal mining assessment work period ending within the year before the
fiscal year for which the assessment has been levied, the assessor shall
exclude from the roll the assessment against the patented mine or mining claim
named in the affidavit.

NRS 362.050Affidavit of labor: Requirement for exemption of surface of
patented mine or mining claim from taxation; form and contents.

1. To obtain the exemption of the surface
of a patented mine or mining claim from taxation ad valorem, pursuant to Section
5 of Article 10 of the Constitution of this state, the owner must record an
affidavit with the office of the county recorder for the county in which the
mine is located on or before December 30 covering work done during the 12
months next preceding 12 a.m. on September 1 of that year. The exemption then
applies to the taxes for the fiscal year beginning on July 1 following the
filing of the affidavit. Upon receipt of such an affidavit, the county recorder
shall transmit a copy of the affidavit, without charge, to the county assessor.

2. The affidavit of labor must describe
particularly the work performed, upon what portion of the mine or claim, and
when and by whom done, and may be substantially in the following form:

State of Nevada }

}ss.

County of.................................. }

................................, being first duly
sworn, deposes and says: That development work worth at least $100 was
performed upon the ............................... patented mine or mining
claim, situated in the ........................................ Mining
District, County of ..........................................., State of
Nevada, during the federal mining assessment work period ending within the year
....... . The work was done at the expense of ..............................,
the owner (or one of the owners) of the patented mine or mining claim, for the
purpose of relieving it from the tax assessment. It was performed by
................................, at about ................ feet in a
................ direction from the monument of location, and was done between
the ........ day of the month of ........ of the year ......., and the
.......... day of the month of .......... of the year ......., and consisted of
the following work:

NRS 362.060Who may make affidavit.The
affidavit may be made by the owner or agent of the owner, or the person
performing the labor, or by any person familiar with the facts, on behalf of
the owner.

[8:206:1915; 1919 RL p. 3010; NCL § 6599]

NRS 362.070Contiguous patented mines or mining claims: Performance of work
on one mine.The owner of two or
more contiguous patented mines or mining claims may perform all the work
required by Section 5 of Article 10 of the Constitution of this state upon one
mine or claim only; but the aggregate amount of such work must be equal to $100
for each of the contiguous patented mines or claims.

NRS 362.090One affidavit may be recorded for labor on several patented
mines or mining claims.A single
affidavit may be recorded for the labor on several patented mines or mining
claims belonging to the same person or held in common ownership, provided all
are located in the same county.

NRS 362.095Method of taxation of patented mine or mining claim used for
purpose other than mining or agriculture.

1. Whenever any portion of a patented mine
or mining claim is used by the patentee or a successor in interest for a
purpose unrelated to mining or agriculture, the portion of such patented mine
or mining claim so used shall cease to be a patented mine or mining claim or
part thereof and shall be taxed as other real property is taxed.

2. For the purpose of this section, a
dwelling placed upon a patented mine or mining claim to be occupied by the
operator of such patented mine or mining claim or his or her agent is not a use
unrelated to mining.

3. Whenever any patented mine or mining
claim is taxed as real property, such taxation shall not affect the status of
contiguous patented mines or mining claims.

NRS 362.100Duties of Department. [Effective through November 24, 2014, and
after that date unless the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]

1. The Department shall:

(a) Investigate and determine the net proceeds of
all minerals extracted and certify them as provided in NRS
362.100 to 362.240, inclusive.

(b) Appraise and assess all reduction, smelting
and milling works, plants and facilities, whether or not associated with a
mine, all drilling rigs, and all supplies, machinery, equipment, apparatus,
facilities, buildings, structures and other improvements used in connection
with any mining, drilling, reduction, smelting or milling operation as provided
in chapter 361 of NRS.

2. As used in this section, “net proceeds
of all minerals extracted” includes the proceeds of all:

(a) Operating mines;

(b) Operating oil and gas wells;

(c) Operations extracting geothermal resources
for profit, except an operation which uses natural hot water to enhance the
growth of animal or plant life; and

NRS 362.100Imposition of excise tax
upon mineral extraction and royalties; applicability; duties of Department.
[Effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General
Election.]

(a) Impose, for the privilege of engaging in
mineral extraction in the State of Nevada, an excise tax upon mineral
extraction by each extractive operation based on the Department’s determination
and certification of the gross yield and net proceeds from the mineral
extraction and upon all royalties paid by each extractive operation; and

(b) Do not impose an ad valorem or property tax
upon the value of the mineral extracted or the gross yield or net proceeds from
the mineral extraction by each extractive operation or the royalties paid by
each extractive operation.

2. In administering the provisions of NRS 362.100 to 362.240,
inclusive, the Department shall:

(a) Investigate and determine the gross yield and
net proceeds from mineral extraction by each extractive operation and certify
the gross yield and net proceeds as provided in NRS
362.100 to 362.240, inclusive.

(b) Appraise and assess all reduction, smelting
and milling works, plants and facilities, whether or not associated with a
mine, all drilling rigs, and all supplies, machinery, equipment, apparatus,
facilities, buildings, structures and other improvements used in connection
with any mining, drilling, reduction, smelting or milling operation as provided
in chapter 361 of NRS.

(c) Deposit all taxes, interest and penalties it
receives pursuant to the provisions of NRS 362.100
to 362.240, inclusive, in the State Treasury for
credit to the State General Fund and, after being apportioned and appropriated
as required by law, for credit to the proper account or fund for distribution
to local governments pursuant to NRS 362.170.

3. The provisions of NRS 362.100 to 362.240,
inclusive, apply to all extractive operations, including, without limitation,
all:

(a) Operating mines;

(b) Operating oil and gas wells;

(c) Operations extracting geothermal resources
for profit, except an operation which uses natural hot water to enhance the
growth of animal or plant life; and

NRS 362.105“Royalty” defined. [Effective through November 24, 2014, and
after that date unless the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]As used in NRS 362.100
to 362.240, inclusive, unless the context otherwise
requires:

1. “Royalty” means a portion of the
proceeds from extraction of a mineral which is paid for the privilege of
extracting the mineral.

2. “Royalties” do not include:

(a) Rents or other compensatory payments which
are fixed and certain in amount and payable periodically over the duration of
the lease regardless of the extent of extractions; or

(b) Minimum royalties covering periods when no
mineral is extracted if the payments are fixed and certain in amount and
payable on a regular periodic basis.

(Added to NRS by 1975, 135; A 1989, 35; R 2013, 3143,
effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General Election)

NRS 362.110Annual statement of gross yield and claimed net proceeds.
[Effective through November 24, 2014, and after that date through June 30,
2015, if the provisions of Senate Joint Resolution No. 15 (2011) are not
approved and ratified by the voters at the 2014 General Election.]

1. Every person extracting any mineral in
this State:

(a) Shall, on or before February 16 of each year,
file with the Department a statement showing the gross yield and claimed net
proceeds from each geographically separate operation where a mineral is
extracted by that person during the calendar year immediately preceding the
year in which the statement is filed.

(b) May have up to 30 days after filing the
statement required by paragraph (a) to file an amended statement.

2. The statement must:

(a) Show the claimed deductions from the gross
yield in the detail set forth in NRS 362.120. The
deductions are limited to the costs incurred during the calendar year
immediately preceding the year in which the statement is filed.

(b) Be in the form prescribed by the Department.

(c) Be verified by the manager, superintendent,
secretary or treasurer of the corporation, or by the owner of the operation,
or, if the owner is a natural person, by someone authorized in his or her
behalf.

NRS 362.110Annual statement of gross
yield, claimed net proceeds and royalties. [Effective November 25, 2014, and
through June 30, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are approved and ratified by the voters at the 2014 General Election.]

1. Each person who engages in mineral
extraction:

(a) Shall, on or before February 16 of each year,
file with the Department a statement showing the gross yield and claimed net
proceeds from each extractive operation and all royalties paid by each
extractive operation during the calendar year immediately preceding the year in
which the statement is filed.

(b) May have up to 30 days after filing the
statement required by paragraph (a) to file an amended statement.

2. The statement must:

(a) Show the claimed deductions from the gross
yield in the detail set forth in NRS 362.120. The
deductions are limited to the costs incurred during the calendar year
immediately preceding the year in which the statement is filed.

(b) Be in the form prescribed by the Department.

(c) Be verified by the manager, superintendent,
secretary or treasurer of the corporation, or by the owner of the operation or,
if the owner is a natural person, by someone authorized in his or her behalf.

NRS 362.110Annual statement of gross
yield and claimed net proceeds; annual list of lessees. [Effective July 1,
2015, if the provisions of Senate Joint Resolution No. 15 (2011) are not
approved and ratified by the voters at the 2014 General Election.]

1. Every person extracting any mineral in
this State or receiving any royalty:

(a) Shall, on or before February 16 of each year,
file with the Department a statement showing the gross yield and claimed net
proceeds from each geographically separate operation where a mineral is
extracted by that person during the calendar year immediately preceding the
year in which the statement is filed.

(b) May have up to 30 days after filing the
statement required by paragraph (a) to file an amended statement.

2. The statement must:

(a) Show the claimed deductions from the gross
yield in the detail set forth in NRS 362.120. The
deductions are limited to the costs incurred during the calendar year
immediately preceding the year in which the statement is filed.

(b) Be in the form prescribed by the Department.

(c) Be verified by the manager, superintendent, secretary
or treasurer of the corporation, or by the owner of the operation, or, if the
owner is a natural person, by someone authorized in his or her behalf.

3. Each recipient of a royalty as
described in subsection 1 shall annually file with the Department a list
showing each of the lessees responsible for taxes due in connection with the
operation or operations included in the statement filed pursuant to subsections
1 and 2.

NRS 362.110Annual statement of gross
yield, claimed net proceeds and royalties; annual statement of amount of
royalties and lessees or sublessees. [Effective July 1, 2015, if the provisions
of Senate Joint Resolution No. 15 (2011) are approved and ratified by the
voters at the 2014 General Election.]

1. Each person who engages in mineral
extraction:

(a) Shall, on or before February 16 of each year,
file with the Department a statement showing the gross yield and claimed net
proceeds from each extractive operation and all royalties paid by each
extractive operation during the calendar year immediately preceding the year in
which the statement is filed.

(b) May have up to 30 days after filing the
statement required by paragraph (a) to file an amended statement.

2. The statement must:

(a) Show the claimed deductions from the gross
yield in the detail set forth in NRS 362.120. The
deductions are limited to the costs incurred during the calendar year
immediately preceding the year in which the statement is filed.

(b) Be in the form prescribed by the Department.

(c) Be verified by the manager, superintendent,
secretary or treasurer of the corporation, or by the owner of the operation or,
if the owner is a natural person, by someone authorized in his or her behalf.

3. Each person who receives any royalties
from an extractive operation shall annually file with the Department a
statement showing the amount of the royalties and each of the lessees or
sublessees who paid the royalties and who is responsible for the taxes upon
mineral extraction due from the extractive operation.

NRS 362.115Annual statement of estimated gross yield, net proceeds and
royalties; quarterly reports; payment of estimated tax liability; use of
statement by Department. [Effective through November 24, 2014, and after that
date through June 30, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are not approved and ratified by the voters at the 2014 General
Election.]

1. In addition to the statement required
by subsection 1 of NRS 362.110, each person
extracting any mineral in this State:

(a) Shall, on or before March 1 of each year,
file with the Department a statement showing the estimated gross yield and
estimated net proceeds from each such operation for the entire current calendar
year and an estimate of all royalties that will be paid during the current
calendar year and shall pay the tax upon the net proceeds and upon the
royalties so estimated. The estimated payment may be reduced by the amount of
any credit to which the taxpayer is entitled pursuant to NRS
362.130. The amount of the tax paid upon royalties must be deducted from
the payment of the royalties.

(b) May file with the Department a quarterly
report stating an estimate for the year and the actual quarterly amounts of
production, gross yield and net proceeds as of March 31, June 30, September 30
and December 31, and pay any additional amount due. The additional estimated
tax liability must be calculated by determining the difference between the
revised estimates of net proceeds based on the recent production figures as
indicated by the quarterly reports and the original estimate supplied pursuant
to paragraph (a). If the person chooses to submit such reports, the reports
must be submitted on a form prescribed by the Department not later than the
last day of the month following the end of the calendar quarter and payment
must be made within 30 days after filing any quarterly report that indicates an
additional estimated tax liability.

2. The Department shall:

(a) Use the statement filed pursuant to
subsection 1 to prepare estimates for use by local governments in the
preparation of their budgets; and

(b) Submit those estimates to the affected local
governments on or before March 15 of each year.

NRS 362.115Annual statement of
estimated gross yield, net proceeds and royalties; quarterly reports; payment
of estimated tax liability; use of statement by Department. [Effective November
25, 2014, and through June 30, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

1. In addition to the statement filed
pursuant to NRS 362.110, each person who engages in
mineral extraction:

(a) Shall, on or before March 1 of each year,
file with the Department a statement showing the estimated gross yield and
estimated net proceeds from each extractive operation for the entire current
calendar year and an estimate of all royalties that will be paid by each
extractive operation for the entire current calendar year and shall pay the tax
upon mineral extraction and the tax upon royalties based on the estimates. The
estimated payment may be reduced by the amount of any credit to which the
taxpayer is entitled pursuant to NRS 362.130. The
amount paid for the tax upon royalties must be deducted from the payment of the
royalties to the recipient.

(b) May file with the Department a quarterly
report stating an estimate for the year and the actual quarterly amounts of
production, gross yield and net proceeds as of March 31, June 30, September 30
and December 31, and pay any additional amount due. The additional estimated
tax liability must be calculated by determining the difference between the
revised estimates of net proceeds based on the recent production figures as
indicated by the quarterly reports and the original estimate supplied pursuant
to paragraph (a). If the person chooses to submit such reports, the reports
must be submitted on a form prescribed by the Department not later than the
last day of the month following the end of the calendar quarter and payment
must be made within 30 days after filing any quarterly report that indicates an
additional estimated tax liability.

2. The Department shall:

(a) Use the statement filed pursuant to
subsection 1 to prepare estimates for use by local governments in the
preparation of their budgets; and

(b) Submit those estimates to the affected local
governments on or before March 15 of each year.

NRS 362.115Annual statement of
estimated gross yield, net proceeds and royalties; use of statement. [Effective
July 1, 2015, if the provisions of Senate Joint Resolution No. 15 (2011) are
not approved and ratified by the voters at the 2014 General Election.]

1. In addition to the statement required
by subsection 1 of NRS 362.110, each person
extracting any mineral in this State shall, on or before March 1 of each year,
file with the Department a statement showing the estimated gross yield and
estimated net proceeds from each such operation for the entire current calendar
year and an estimate of all royalties that will be paid during the current
calendar year.

2. The Department shall:

(a) Use the statement filed pursuant to
subsection 1 only to prepare estimates for use by local governments in the
preparation of their budgets; and

(b) Submit those estimates to the local
governments on or before March 15 of each year.

NRS 362.115Annual statement of
estimated gross yield, net proceeds and royalties; use of statement. [Effective
July 1, 2015, if the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

1. In addition to the statement filed
pursuant to NRS 362.110, each person who engages in
mineral extraction shall, on or before March 1 of each year, file with the
Department a statement showing the estimated gross yield and estimated net
proceeds from each extractive operation for the entire current calendar year
and an estimate of all royalties that will be paid by each extractive operation
for the entire current calendar year.

2. The Department shall:

(a) Use the statement filed pursuant to
subsection 1 only to prepare estimates for use by local governments in the
preparation of their budgets; and

(b) Submit those estimates to the local
governments on or before March 15 of each year.

NRS 362.120Computation of gross yield and net proceeds; required reports.
[Effective through November 24, 2014, and after that date through December 31,
2015, if the provisions of Senate Joint Resolution No. 15 (2011) are not
approved and ratified by the voters at the 2014 General Election.]

1. The Department shall, from the
statement filed pursuant to NRS 362.110 and from
all obtainable data, evidence and reports, compute in dollars and cents the
gross yield and net proceeds of the calendar year immediately preceding the
year in which the statement is filed.

2. The gross yield must include the value
of any mineral extracted which was:

(a) Sold;

(b) Exchanged for any thing or service;

(c) Removed from the State in a form ready for
use or sale; or

(d) Used in a manufacturing process or in
providing a service,

Ê during that
period.

3. The net proceeds are ascertained and
determined by subtracting from the gross yield the following deductions for
costs incurred during that period, and none other:

(a) The actual cost of extracting the mineral,
which is limited to direct costs for activities performed in the State of
Nevada.

(b) The actual cost of transporting the mineral
to the place or places of reduction, refining and sale.

(c) The actual cost of reduction, refining and
sale.

(d) The actual cost of delivering the mineral.

(e) The actual cost of maintenance and repairs
of:

(1) All machinery, equipment, apparatus
and facilities used in the mine.

(3) All facilities and equipment for
transportation except those that are under the jurisdiction of the Public
Utilities Commission of Nevada or the Nevada Transportation Authority.

(f) Depreciation of the original capitalized cost
of the machinery, equipment, apparatus, works, plants and facilities mentioned
in paragraph (e). The annual depreciation charge consists of amortization of
the original cost in a manner prescribed by regulation of the Nevada Tax
Commission. The probable life of the property represented by the original cost
must be considered in computing the depreciation charge.

(g) All money paid as contributions or payments
under the unemployment compensation law of the State of Nevada, as contained in
chapter 612 of NRS, all money paid as
contributions under the Social Security Act of the Federal Government, and all
money paid to either the State of Nevada or the Federal Government under any
amendment to either or both of the statutes mentioned in this paragraph.

(h) The costs of employee travel which occurs
within the State of Nevada and which is directly related to mining operations
within the State of Nevada.

(j) The actual cost of developmental work in or
about the mine or upon a group of mines when operated as a unit, which is
limited to work that is necessary to the operation of the mine or group of
mines.

(k) The costs of reclamation work in the years
the reclamation work occurred, including, without limitation, costs associated
with the remediation of a site.

(l) All money paid as royalties by a lessee or
sublessee of a mine or well, or by both, in determining the net proceeds of the
lessee or sublessee, or both.

4. Royalties deducted by a lessee or
sublessee constitute part of the net proceeds of the minerals extracted, upon
which a tax must be levied against the person to whom the royalty has been
paid.

5. Every person acquiring property in the
State of Nevada to engage in the extraction of minerals and who incurs any of
the expenses mentioned in subsection 3 shall report those expenses and the
recipient of any royalty to the Department on forms provided by the Department.
The Department shall report annually to the Mining Oversight and Accountability
Commission the expenses and deductions of each mining operation in the State of
Nevada.

6. The several deductions mentioned in
subsection 3 do not include any expenditures for salaries, or any portion of
salaries, of any person not actually engaged in:

(a) The working of the mine;

(b) The operating of the mill, smelter or
reduction works;

(c) The operating of the facilities or equipment
for transportation;

(d) Superintending the management of any of those
operations;

(e) The State of Nevada, in office, clerical or
engineering work necessary or proper in connection with any of those operations;
or

(f) Nevada-based corporate services.

7. The following expenses are specifically
excluded from any deductions from the gross yield:

(a) The costs of employee housing.

(b) Except as otherwise provided in paragraph (h)
of subsection 3, the costs of employee travel.

(c) The costs of severing the employment of any
employees.

(d) Any dues paid to a third-party organization
or trade association to promote or advertise a product.

(e) Expenses relating to governmental relations
or to compensate a natural person or entity to influence legislative decisions.

(f) The costs of mineral exploration.

(g) Any federal, state or local taxes.

8. As used in this section, “Nevada-based
corporate services” means corporate services which are performed in the State
of Nevada from an office located in this State and which directly support
mining operations in this State, including, without limitation, accounting
functions relating to mining operations at a mine site in this State such as
payroll, accounts payable, production reporting, cost reporting, state and
local tax reporting and recordkeeping concerning property.

NRS 362.120Computation of gross
yield and net proceeds; required reports. [Effective November 25, 2014, and
through December 31, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are approved and ratified by the voters at the 2014 General Election.]

1. The Department shall, from the
statement filed pursuant to NRS 362.110 and from
all obtainable data, evidence and reports, compute in dollars and cents the
gross yield and net proceeds from each extractive operation for the calendar
year immediately preceding the year in which the statement is filed.

2. The computation of the gross yield must
include, without limitation, any mineral extracted which, during that period,
was:

(a) Sold;

(b) Exchanged for any thing or service;

(c) Removed from the State in a form ready for
use or sale; or

(d) Used in a manufacturing process or in
providing a service.

3. The computation of the net proceeds
must be ascertained and determined by subtracting from the gross yield the
following deductions for costs incurred during that period, and none other:

(a) The actual cost of extracting the mineral,
which is limited to direct costs for activities performed in the State of
Nevada.

(b) The actual cost of transporting the mineral
to the place or places of reduction, refining and sale.

(c) The actual cost of reduction, refining and
sale.

(d) The actual cost of delivering the mineral.

(e) The actual cost of maintenance and repairs
of:

(1) All machinery, equipment, apparatus
and facilities used in the mine.

(3) All facilities and equipment for
transportation except those that are under the jurisdiction of the Public
Utilities Commission of Nevada or the Nevada Transportation Authority.

(f) Depreciation of the original capitalized cost
of the machinery, equipment, apparatus, works, plants and facilities mentioned
in paragraph (e). The annual depreciation charge consists of amortization of
the original cost in a manner prescribed by regulation of the Nevada Tax
Commission. The probable life of the property represented by the original cost
must be considered in computing the depreciation charge.

(g) All money paid as contributions or payments
under the unemployment compensation law of the State of Nevada, as contained in
chapter 612 of NRS, all money paid as
contributions under the Social Security Act of the Federal Government, and all
money paid to either the State of Nevada or the Federal Government under any
amendment to either or both of the statutes mentioned in this paragraph.

(h) The costs of employee travel which occurs
within the State of Nevada and which is directly related to mining operations
within the State of Nevada.

(j) The actual cost of developmental work in or
about the mine or upon a group of mines when operated as a unit, which is
limited to work that is necessary to the operation of the mine or group of
mines.

(k) The costs of reclamation work in the years
the reclamation work occurred, including, without limitation, costs associated
with the remediation of a site.

(l) All money paid as royalties by a lessee or
sublessee of a mine or well, or by both, in determining the net proceeds of the
lessee or sublessee, or both.

4. Royalties deducted by a lessee or
sublessee constitute part of the net proceeds from mineral extraction, and the
tax upon royalties must be levied against the person to whom the royalties are
paid.

5. Each person who acquires any interest
in property in the State of Nevada to engage in mineral extraction and who
incurs any of the expenses mentioned in subsection 3 shall report those
expenses and the recipient of any royalty to the Department on forms provided
by the Department. The Department shall report annually to the Mining Oversight
and Accountability Commission the expenses and deductions of each mining
operation in the State of Nevada.

6. The several deductions mentioned in
subsection 3 do not include any expenditures for salaries, or any portion of
salaries, of any person not actually engaged in:

(a) The working of the mine;

(b) The operating of the mill, smelter or
reduction works;

(c) The operating of the facilities or equipment
for transportation;

(d) Superintending the management of any of those
operations;

(e) The State of Nevada, in office, clerical or
engineering work necessary or proper in connection with any of those operations;
or

(f) Nevada-based corporate services.

7. The following expenses are specifically
excluded from any deductions from the gross yield:

(a) The costs of employee housing.

(b) Except as otherwise provided in paragraph (h)
of subsection 3, the costs of employee travel.

(c) The costs of severing the employment of any
employees.

(d) Any dues paid to a third-party organization
or trade association to promote or advertise a product.

(e) Expenses relating to governmental relations
or to compensate a natural person or entity to influence legislative decisions.

(f) The costs of mineral exploration.

(g) Any federal, state or local taxes.

8. As used in this section, “Nevada-based
corporate services” means corporate services which are performed in the State
of Nevada from an office located in this State and which directly support
mining operations in this State, including, without limitation, accounting
functions relating to mining operations at a mine site in this State such as
payroll, accounts payable, production reporting, cost reporting, state and
local tax reporting and recordkeeping concerning property.

NRS 362.120Computation of gross
yield and net proceeds; required reports. [Effective January 1, 2016, if the
provisions of Senate Joint Resolution No. 15 (2011) are not approved and
ratified by the voters at the 2014 General Election.]

1. The Department shall, from the
statement filed pursuant to NRS 362.110 and from
all obtainable data, evidence and reports, compute in dollars and cents the
gross yield and net proceeds of the calendar year immediately preceding the
year in which the statement is filed.

2. The gross yield must include the value
of any mineral extracted which was:

(a) Sold;

(b) Exchanged for any thing or service;

(c) Removed from the State in a form ready for
use or sale; or

(d) Used in a manufacturing process or in
providing a service,

Ê during that
period.

3. The net proceeds are ascertained and
determined by subtracting from the gross yield the following deductions for
costs incurred during that period, and none other:

(a) The actual cost of extracting the mineral,
which is limited to direct costs for activities performed in the State of
Nevada.

(b) The actual cost of transporting the mineral
to the place or places of reduction, refining and sale.

(c) The actual cost of reduction, refining and
sale.

(d) The actual cost of delivering the mineral.

(e) The actual cost of maintenance and repairs
of:

(1) All machinery, equipment, apparatus
and facilities used in the mine.

(3) All facilities and equipment for
transportation except those that are under the jurisdiction of the Public
Utilities Commission of Nevada or the Nevada Transportation Authority.

(f) Depreciation of the original capitalized cost
of the machinery, equipment, apparatus, works, plants and facilities mentioned
in paragraph (e). The annual depreciation charge consists of amortization of
the original cost in a manner prescribed by regulation of the Nevada Tax
Commission. The probable life of the property represented by the original cost
must be considered in computing the depreciation charge.

(g) All money expended for premiums for
industrial insurance, and the actual cost of hospital and medical attention and
accident benefits and group insurance for employees actually engaged in mining
operations within the State of Nevada.

(h) All money paid as contributions or payments
under the unemployment compensation law of the State of Nevada, as contained in
chapter 612 of NRS, all money paid as
contributions under the Social Security Act of the Federal Government, and all
money paid to either the State of Nevada or the Federal Government under any
amendment to either or both of the statutes mentioned in this paragraph.

(i) The costs of employee travel which occurs
within the State of Nevada and which is directly related to mining operations
within the State of Nevada.

(k) The actual cost of developmental work in or
about the mine or upon a group of mines when operated as a unit, which is
limited to work that is necessary to the operation of the mine or group of
mines.

(l) The costs of reclamation work in the years
the reclamation work occurred, including, without limitation, costs associated
with the remediation of a site.

(m) All money paid as royalties by a lessee or
sublessee of a mine or well, or by both, in determining the net proceeds of the
lessee or sublessee, or both.

4. Royalties deducted by a lessee or
sublessee constitute part of the net proceeds of the minerals extracted, upon
which a tax must be levied against the person to whom the royalty has been
paid.

5. Every person acquiring property in the
State of Nevada to engage in the extraction of minerals and who incurs any of
the expenses mentioned in subsection 3 shall report those expenses and the
recipient of any royalty to the Department on forms provided by the Department.
The Department shall report annually to the Mining Oversight and Accountability
Commission the expenses and deductions of each mining operation in the State of
Nevada.

6. The several deductions mentioned in
subsection 3 do not include any expenditures for salaries, or any portion of
salaries, of any person not actually engaged in:

(a) The working of the mine;

(b) The operating of the mill, smelter or
reduction works;

(c) The operating of the facilities or equipment
for transportation;

(d) Superintending the management of any of those
operations;

(e) The State of Nevada, in office, clerical or
engineering work necessary or proper in connection with any of those operations;
or

(f) Nevada-based corporate services.

7. The following expenses are specifically
excluded from any deductions from the gross yield:

(a) The costs of employee housing.

(b) Except as otherwise provided in paragraph (i)
of subsection 3, the costs of employee travel.

(c) The costs of severing the employment of any
employees.

(d) Any dues paid to a third-party organization
or trade association to promote or advertise a product.

(e) Expenses relating to governmental relations
or to compensate a natural person or entity to influence legislative decisions.

(f) The costs of mineral exploration.

(g) Any federal, state or local taxes.

8. As used in this section, “Nevada-based
corporate services” means corporate services which are performed in the State
of Nevada from an office located in this State and which directly support
mining operations in this State, including, without limitation, accounting
functions relating to mining operations at a mine site in this State such as
payroll, accounts payable, production reporting, cost reporting, state and
local tax reporting and recordkeeping concerning property.

NRS 362.120Computation of gross
yield and net proceeds; required reports. [Effective January 1, 2016, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

1. The Department shall, from the
statement filed pursuant to NRS 362.110 and from
all obtainable data, evidence and reports, compute in dollars and cents the
gross yield and net proceeds from each extractive operation for the calendar
year immediately preceding the year in which the statement is filed.

2. The computation of the gross yield must
include, without limitation, any mineral extracted which, during that period,
was:

(a) Sold;

(b) Exchanged for any thing or service;

(c) Removed from the State in a form ready for
use or sale; or

(d) Used in a manufacturing process or in
providing a service.

3. The computation of the net proceeds
must be ascertained and determined by subtracting from the gross yield the
following deductions for costs incurred during that period, and none other:

(a) The actual cost of extracting the mineral,
which is limited to direct costs for activities performed in the State of
Nevada.

(b) The actual cost of transporting the mineral
to the place or places of reduction, refining and sale.

(c) The actual cost of reduction, refining and
sale.

(d) The actual cost of delivering the mineral.

(e) The actual cost of maintenance and repairs
of:

(1) All machinery, equipment, apparatus
and facilities used in the mine.

(3) All facilities and equipment for
transportation except those that are under the jurisdiction of the Public
Utilities Commission of Nevada or the Nevada Transportation Authority.

(f) Depreciation of the original capitalized cost
of the machinery, equipment, apparatus, works, plants and facilities mentioned
in paragraph (e). The annual depreciation charge consists of amortization of
the original cost in a manner prescribed by regulation of the Nevada Tax
Commission. The probable life of the property represented by the original cost
must be considered in computing the depreciation charge.

(g) All money expended for premiums for
industrial insurance, and the actual cost of hospital and medical attention and
accident benefits and group insurance for employees actually engaged in mining
operations within the State of Nevada.

(h) All money paid as contributions or payments
under the unemployment compensation law of the State of Nevada, as contained in
chapter 612 of NRS, all money paid as
contributions under the Social Security Act of the Federal Government, and all
money paid to either the State of Nevada or the Federal Government under any
amendment to either or both of the statutes mentioned in this paragraph.

(i) The costs of employee travel which occurs
within the State of Nevada and which is directly related to mining operations
within the State of Nevada.

(k) The actual cost of developmental work in or
about the mine or upon a group of mines when operated as a unit, which is
limited to work that is necessary to the operation of the mine or group of
mines.

(l) The costs of reclamation work in the years
the reclamation work occurred, including, without limitation, costs associated
with the remediation of a site.

(m) All money paid as royalties by a lessee or
sublessee of a mine or well, or by both, in determining the net proceeds of the
lessee or sublessee, or both.

4. Royalties deducted by a lessee or
sublessee constitute part of the net proceeds from mineral extraction, and the
tax upon royalties must be levied against the person to whom the royalties are
paid.

5. Each person who acquires any interest
in property in the State of Nevada to engage in mineral extraction and who
incurs any of the expenses mentioned in subsection 3 shall report those
expenses and the recipient of any royalty to the Department on forms provided
by the Department. The Department shall report annually to the Mining Oversight
and Accountability Commission the expenses and deductions of each mining
operation in the State of Nevada.

6. The several deductions mentioned in
subsection 3 do not include any expenditures for salaries, or any portion of
salaries, of any person not actually engaged in:

(a) The working of the mine;

(b) The operating of the mill, smelter or
reduction works;

(c) The operating of the facilities or equipment
for transportation;

(d) Superintending the management of any of those
operations;

(e) The State of Nevada, in office, clerical or
engineering work necessary or proper in connection with any of those operations;
or

(f) Nevada-based corporate services.

7. The following expenses are specifically
excluded from any deductions from the gross yield:

(a) The costs of employee housing.

(b) Except as otherwise provided in paragraph (i)
of subsection 3, the costs of employee travel.

(c) The costs of severing the employment of any
employees.

(d) Any dues paid to a third-party organization
or trade association to promote or advertise a product.

(e) Expenses relating to governmental relations
or to compensate a natural person or entity to influence legislative decisions.

(f) The costs of mineral exploration.

(g) Any federal, state or local taxes.

8. As used in this section, “Nevada-based
corporate services” means corporate services which are performed in the State
of Nevada from an office located in this State and which directly support
mining operations in this State, including, without limitation, accounting
functions relating to mining operations at a mine site in this State such as
payroll, accounts payable, production reporting, cost reporting, state and
local tax reporting and recordkeeping concerning property.

NRS 362.130Annual preparation and mailing of certificate by Department;
payment of tax due and penalty; overpayments. [Effective through November 24,
2014, and after that date through June 30, 2015, if the provisions of Senate
Joint Resolution No. 15 (2011) are not approved and ratified by the voters at
the 2014 General Election.]

1. When the Department determines from the
annual statement filed pursuant to NRS 362.110 the
net proceeds of any minerals extracted, it shall prepare its certificate of the
amount of the net proceeds, the amount of the estimated tax paid in the prior
calendar year pursuant to paragraph (a) of subsection 1 of NRS 362.115 and any additional payments made pursuant
to paragraph (b) of subsection 1 of that section, and the balance of the tax
due, if any, and send a copy of the certificate to the owner or operator of the
mine.

2. The certificate must be prepared and
mailed not later than:

(a) April 20 immediately following the month of
February during which the annual statement was filed; or

(b) April 30 immediately thereafter if an amended
statement is filed in a timely manner.

3. The tax due as indicated in the
certificate and any penalty must be paid on or before May 10 of the year in
which the certificate is received.

4. If the amount paid pursuant to
paragraph (a) of subsection 1 of NRS 362.115 in the
prior calendar year is less than 90 percent of the amount certified pursuant to
this section, the amount due must include a penalty of 10 percent of the amount
by which the tax was underpaid unless:

(a) The amount paid pursuant to paragraph (a) of
subsection 1 of NRS 362.115 in the prior calendar
year is equal to or greater than the total liability of the operation for the
preceding calendar year; or

(b) The person files quarterly reports pursuant
to paragraph (b) of subsection 1 of NRS 362.115 in
a timely manner for that year and the total of all payments exceeds 90 percent
of the amount certified.

5. If an overpayment was made, the
overpayment must be credited toward the payment due on March 1 of the next
calendar year. If the certificate shows a net loss for the year covered by the
certificate or an amount of tax due for that year which is less than an
overpayment made for the preceding year, the amount or remaining amount of the
overpayment must, after being credited against any amount then due from the
taxpayer in accordance with NRS 360.236,
be refunded to the taxpayer within 30 days after the certification was sent to
the taxpayer.

NRS 362.130Annual preparation and
mailing of certificate by Department; payment of tax due and penalty;
overpayments. [Effective November 25, 2014, and through June 30, 2015, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

1. When the Department determines from the
annual statement filed pursuant to NRS 362.110 the
net proceeds from mineral extraction, it shall prepare its certificate of the
amount of the net proceeds, the amount of the estimated tax paid in the prior
calendar year pursuant to paragraph (a) of subsection 1 of NRS 362.115 and any additional payments made pursuant
to paragraph (b) of subsection 1 of that section, and the balance of the tax
due, if any, and send a copy of the certificate to the owner or operator of the
extractive operation.

2. The certificate must be prepared and
mailed not later than:

(a) April 20 immediately following the month of
February during which the annual statement was filed; or

(b) April 30 immediately thereafter if an amended
statement is filed in a timely manner.

3. The tax due as indicated in the
certificate and any penalty must be paid on or before May 10 of the year in
which the certificate is received.

4. If the amount paid pursuant to
paragraph (a) of subsection 1 of NRS 362.115 in the
prior calendar year is less than 90 percent of the amount certified pursuant to
this section, the amount due must include a penalty of 10 percent of the amount
by which the tax was underpaid unless:

(a) The amount paid pursuant to paragraph (a) of
subsection 1 of NRS 362.115 in the prior calendar
year is equal to or greater than the total liability of the operation for the
preceding calendar year; or

(b) The person files quarterly reports pursuant
to paragraph (b) of subsection 1 of NRS 362.115 in
a timely manner for that year and the total of all payments exceeds 90 percent
of the amount certified.

5. If an overpayment was made, the
overpayment must be credited toward the payment due on March 1 of the next
calendar year. If the certificate shows a net loss for the year covered by the
certificate or an amount of tax due for that year which is less than an
overpayment made for the preceding year, the amount or remaining amount of the
overpayment must, after being credited against any amount then due from the
taxpayer in accordance with NRS 360.236,
be refunded to the taxpayer within 30 days after the certification was sent to
the taxpayer.

NRS 362.130Preparation and mailing
of certificate of amount of net proceeds and tax due; due date of tax;
overpayments. [Effective July 1, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are not approved and ratified by the voters at the 2014
General Election.]

1. When the Department determines from the
annual statement filed pursuant to NRS 362.110 the
net proceeds of any minerals extracted, it shall prepare its certificate of the
amount of the net proceeds and the tax due and send a copy of the certificate
to the owner of the mine, operator of the mine or recipient of the royalty, as
the case may be.

2. The certificate must be prepared and
mailed not later than:

(a) April 20 immediately following the month of
February during which the annual statement was filed; or

(b) April 30 immediately thereafter if an amended
statement is filed in a timely manner.

3. The tax due as indicated in the
certificate must be paid on or before May 10 of the year in which the
certificate is received.

4. If an overpayment was made, the
overpayment must be credited toward the payment due on May 10 of the next
calendar year. If the certificate shows a net loss for the year covered by the
certificate or an amount of tax due for that year which is less than an
overpayment made for the preceding year, the amount or remaining amount of the
overpayment must, after being credited against any amount then due from the
taxpayer in accordance with NRS 360.236,
be refunded to the taxpayer within 30 days after the certification was sent to
the taxpayer.

NRS 362.130Preparation and mailing
of certificate of amount of net proceeds and tax due; due date of tax;
overpayments. [Effective July 1, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

1. When the Department determines from the
annual statement filed pursuant to NRS 362.110 the
net proceeds from mineral extraction, it shall prepare its certificate of the
amount of the net proceeds and the tax due and send a copy of the certificate
to the owner or operator of the extractive operation and the recipient of any
royalty, as the case may be.

2. The certificate must be prepared and
mailed not later than:

(a) April 20 immediately following the month of
February during which the annual statement was filed; or

(b) April 30 immediately thereafter if an amended
statement is filed in a timely manner.

3. The tax due as indicated in the
certificate must be paid on or before May 10 of the year in which the
certificate is received.

4. If an overpayment was made, the
overpayment must be credited toward the payment due on May 10 of the next
calendar year. If the certificate shows a net loss for the year covered by the
certificate or an amount of tax due for that year which is less than an
overpayment made for the preceding year, the amount or remaining amount of the
overpayment must, after being credited against any amount then due from the
taxpayer in accordance with NRS 360.236,
be refunded to the taxpayer within 30 days after the certification was sent to
the taxpayer.

NRS 362.135Appeal of certification to State Board of Equalization; payment
of tax pending determination of appeal. [Effective through November 24, 2014,
and after that date unless the provisions of Senate Joint Resolution No. 15
(2011) are approved and ratified by the voters at the 2014 General Election.]

1. Any person dissatisfied by any
certification of the Department may appeal from that determination to the State
Board of Equalization. The appeal must be filed within 30 days after the
certification is sent to the taxpayer.

2. Pending determination of the appeal,
the person certified as owing the tax shall pay it on or before the date due,
and the tax is considered to be paid under protest.

NRS 362.135Appeal of certification
to Nevada Tax Commission; payment of tax pending determination of appeal. [Effective
November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]

1. Any person dissatisfied by any
certification or taxation by the Department pursuant to the provisions of NRS 362.100 to 362.240,
inclusive, may appeal from that determination to the Nevada Tax Commission by
filing a notice of appeal in accordance with the requirements set forth in NRS 360.245.

2. Pending determination of the appeal,
the person certified as owing the tax shall pay it on or before the date due,
and the tax is considered to be paid under protest.

(Added to NRS by 1977, 1052; A 1987, 169; 1989, 38; 2013, 3129,
effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General Election)

NRS 362.140Rate of tax upon net proceeds. [Effective through November 24,
2014, and after that date unless the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General
Election.]

1. Except as otherwise provided in this
section, the rate of tax upon the net proceeds of each geographically separate
extractive operation depends upon the ratio of the net proceeds to the gross
proceeds of that operation as a whole, according to the following table:

Net Proceeds as Percentage Rate
of Tax as Percentage

of Gross Proceeds of
Net Proceeds

Less than 10........................................................................................... 2.00

10 or more but less than 18................................................................. 2.50

18 or more but less than 26................................................................. 3.00

26 or more but less than 34................................................................. 3.50

34 or more but less than 42................................................................. 4.00

42 or more but less than 50................................................................. 4.50

2. If the combined rate of tax ad valorem
which would be assessed but for the provisions of Section 5 of Article 10 of
the Constitution of this state, including any rate levied by the State of
Nevada, upon property at the situs of the operation is more than 2 percent, the
minimum rate of tax under this section equals that rate of tax ad valorem.

3. The rate of tax upon royalties is 5
percent.

4. The rate of tax upon the net proceeds
of a geothermal operation taxable pursuant to NRS 362.100
is the combined rate of tax ad valorem applicable to the property at the situs
of the operation.

5. The rate of tax upon an operation for
which the net proceeds in a calendar year exceed $4,000,000 is 5 percent.

NRS 362.140Rate of tax upon mineral
extraction and royalties. [Effective November 25, 2014, if the provisions of
Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters
at the 2014 General Election.]

1. There is hereby imposed an excise tax
upon mineral extraction by each extractive operation. Except as otherwise
provided in this section, the rate of tax upon mineral extraction by each
extractive operation depends upon the ratio of the net proceeds to the gross
proceeds from that operation as a whole, according to the following table:

Net Proceeds as Percentage Rate
of Tax as Percentage

of Gross Proceeds of
Net Proceeds

Less than 10........................................................................................... 2.00

10 or more but less than 18................................................................. 2.50

18 or more but less than 26................................................................. 3.00

26 or more but less than 34................................................................. 3.50

34 or more but less than 42................................................................. 4.00

42 or more but less than 50................................................................. 4.50

2. If the combined rate of tax ad valorem,
including any rate levied by the State of Nevada, for property at the situs of
the extractive operation is more than 2 percent, the minimum rate of tax upon
mineral extraction by the operation is an amount equal to the combined rate of
tax ad valorem multiplied by the net proceeds.

3. There is hereby imposed an excise tax
upon royalties. The rate of tax upon royalties is 5 percent, regardless of the
rate of tax upon mineral extraction which is imposed on the extractive
operation that pays the royalties.

4. If a geothermal operation is taxable
pursuant to NRS 362.100 to 362.240,
inclusive, the rate of tax upon mineral extraction by the operation is an
amount equal to the combined rate of tax ad valorem, including any rate levied
by the State of Nevada, for property at the situs of the operation multiplied
by the net proceeds.

5. Except as otherwise provided in
subsection 4, if an extractive operation extracts minerals for which the net proceeds
in a calendar year exceed $4,000,000, the rate of tax upon mineral extraction
by the operation is an amount equal to 5 percent multiplied by the net
proceeds.

NRS 362.150Liens for taxes on proceeds of minerals. [Effective through
November 24, 2014, and after that date unless the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]Every tax
levied under the authority or provisions of NRS 362.100
to 362.240, inclusive, on the proceeds of minerals
extracted is hereby made a lien on the mines from which minerals are extracted
for sale or reduction, and also on all machinery, fixtures, equipment and
stockpiles of the taxpayer located at the mine site or elsewhere in the State.
The lien attaches on the 1st day of January of each year, for the calendar year
commencing on that day and may not be removed or satisfied until the taxes are
all paid, or the title to those mines has vested absolutely in a purchaser
under a sale for those taxes.

NRS 362.150Liens for taxes upon
mineral extraction. [Effective November 25, 2014, if the provisions of Senate
Joint Resolution No. 15 (2011) are approved and ratified by the voters at the
2014 General Election.]

1. Every tax upon mineral extraction is
hereby made a lien on:

(a) The mines of the taxpayer from which the
minerals are extracted; and

(b) All machinery, fixtures, equipment and
stockpiles of the taxpayer located at the mines of the taxpayer or elsewhere in
the State.

2. The lien attaches on January 1 of each
year, for the calendar year commencing on that day, and may not be removed or
satisfied until the taxes are all paid or the title to the mines or property of
the taxpayer has vested absolutely in a purchaser under a sale for the unpaid
taxes.

NRS 362.160When tax becomes delinquent; collection of delinquency, penalty
and interest; appeal of imposition of penalty and interest. [Effective through
November 24, 2014, and after that date unless the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

1. Except as otherwise provided in NRS 360.232 and 360.320, if the amount of any tax required
by NRS 362.100 to 362.240,
inclusive, is not paid within 10 days after it is due, it is delinquent and
must be collected as other delinquent taxes are collected by law, together with
a penalty of 10 percent of the amount of the tax which is owed, as determined
by the Department, in addition to the tax, plus interest at the rate of 1
percent per month, or fraction of a month, from the date the tax was due until
the date of payment.

2. Any person extracting any mineral or
receiving a royalty may appeal from the imposition of the penalty and interest
to the Nevada Tax Commission by filing a notice of appeal in accordance with
the requirements set forth in NRS 360.245.

NRS 362.160When tax becomes
delinquent; collection of delinquency, penalty and interest; appeal of
imposition of penalty and interest. [Effective November 25, 2014, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

1. Except as otherwise provided in NRS 360.232 and 360.320, if the amount of any tax upon
mineral extraction or royalties is not paid by the taxpayer within 10 days
after it is due, it is delinquent and must be collected as other delinquent
taxes are collected by law, together with a penalty of 10 percent of the amount
of the tax which is owed, as determined by the Department, in addition to the
tax, plus interest at the rate of 1 percent per month, or fraction of a month,
from the date the tax was due until the date of payment.

2. Any taxpayer against whom a penalty and
interest is imposed pursuant to this section may appeal from the imposition of
the penalty and interest to the Nevada Tax Commission by filing a notice of
appeal in accordance with the requirements set forth in NRS 360.245.

NRS 362.170Appropriation to county of amount of tax, penalties and interest
attributable to extractive operations in county; apportionment by county
treasurer; Department to report amount received as tax upon net proceeds of
geothermal resources. [Effective through November 24, 2014, and after that date
through June 30, 2015, if the provisions of Senate Joint Resolution No. 15
(2011) are not approved and ratified by the voters at the 2014 General
Election.]

1. There is hereby appropriated to each
county the total of the amounts obtained by multiplying, for each extractive operation
situated within the county, the net proceeds of that operation and any
royalties paid by that operation, as estimated and paid pursuant to NRS 362.115, plus any amounts paid pursuant to NRS 362.130 by the combined rate of tax ad valorem for
the fiscal year to which the payments apply, excluding any rate levied by the
State of Nevada, for property at that site, plus a pro rata share of any
penalties and interest collected by the Department for the late payment of
taxes distributed to the county. The Department shall report to the State
Controller on or before May 25 of each year the amount appropriated to each
county, as calculated for each operation from the estimate provided pursuant to
NRS 362.115 for the current calendar year and any
adjustments made pursuant to NRS 362.130 for the
preceding calendar year. The State Controller shall distribute all money due to
a county on or before May 30 of each year. The Department shall report to the
State Controller any additional payments made pursuant to paragraph (b) of
subsection 1 of NRS 362.115 within 15 days after
receipt of the payment, and the State Controller shall distribute the money to
the appropriate county within 5 days after receipt of the report from the
Department. For the purposes of this subsection, payments made pursuant to
paragraph (b) of subsection 1 of NRS 362.115 apply
to the fiscal year in which the statement of the estimated net proceeds is
filed pursuant to paragraph (a) of subsection 1 of NRS
362.115.

2. The county treasurer shall apportion to
each local government or other local entity an amount calculated by:

(a) Determining the total of the amounts obtained
by multiplying, for each extractive operation situated within its jurisdiction,
the net proceeds of that operation and any royalty payments paid by that
operation, by the rate levied on behalf of that local government or other local
entity;

(b) Adding to the amount determined pursuant to
paragraph (a) a pro rata share of any penalties and interest collected by the
Department for the late payment of taxes distributed to that local government
or local entity; and

(c) Subtracting from the amount determined
pursuant to paragraph (b) a commission of 5 percent of that amount, of which 3
percent must be deposited in the county general fund and 2 percent must be
accounted for separately in the account for the acquisition and improvement of
technology in the office of the county assessor created pursuant to NRS 250.085.

3. The amounts apportioned pursuant to
subsection 2, including, without limitation, the amount retained by the county
and excluding the percentage commission, must be applied to the uses for which
each levy was authorized in the same proportion as the rate of each levy bears
to the total rate.

4. The Department shall report to the
State Controller on or before May 25 of each year the amount received as tax
upon the net proceeds of geothermal resources which equals the product of those
net proceeds multiplied by the rate of tax levied ad valorem by the State of
Nevada.

NRS 362.170Appropriation to county
of amount of tax, penalties and interest attributable to extractive operations
in county; apportionment by county treasurer; Department to report amount
received as tax upon mineral extraction by geothermal operations. [Effective
November 25, 2014, and through June 30, 2015, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

1. There is hereby appropriated to each
county the total of the amounts obtained by multiplying, for each extractive
operation situated within the county, the net proceeds from that operation and
any royalties paid by that operation, as estimated and paid pursuant to NRS 362.115, plus any amounts paid pursuant to NRS 362.130 by the combined rate of tax ad valorem for
the fiscal year to which the payments apply, excluding any rate levied by the
State of Nevada, for property at the situs of the operation, plus a pro rata
share of any penalties and interest collected by the Department for the late
payment of taxes distributed to the county. The Department shall report to the
State Controller on or before May 25 of each year the amount appropriated to
each county, as calculated for each operation from the estimate provided
pursuant to NRS 362.115 for the current calendar
year and any adjustments made pursuant to NRS 362.130
for the preceding calendar year. The State Controller shall distribute all
money due to a county on or before May 30 of each year. The Department shall
report to the State Controller any additional payments made pursuant to
paragraph (b) of subsection 1 of NRS 362.115 within
15 days after receipt of the payment, and the State Controller shall distribute
the money to the appropriate county within 5 days after receipt of the report
from the Department. For the purposes of this subsection, payments made
pursuant to paragraph (b) of subsection 1 of NRS
362.115 apply to the fiscal year in which the statement of the estimated
net proceeds is filed pursuant to paragraph (a) of subsection 1 of NRS 362.115.

2. The county treasurer shall apportion to
each local government or other local entity an amount calculated by:

(a) Determining the total of the amounts obtained
by multiplying, for each extractive operation situated within its jurisdiction,
the net proceeds from that operation and any royalties paid by that operation,
by the rate of tax ad valorem levied on behalf of that local government or
other local entity;

(b) Adding to the amount determined pursuant to
paragraph (a) a pro rata share of any penalties and interest collected by the
Department for the late payment of taxes distributed to that local government
or other local entity; and

(c) Subtracting from the amount determined
pursuant to paragraph (b) a commission of 5 percent of that amount, of which 3
percent must be deposited in the county general fund and 2 percent must be
accounted for separately in the account for the acquisition and improvement of
technology in the office of the county assessor created pursuant to NRS 250.085.

3. The amounts apportioned pursuant to
subsection 2, including, without limitation, the amount retained by the county,
but excluding the county’s percentage commission, must be applied to the uses
for which each levy was authorized in the same proportion as the rate of each
levy bears to the total rate.

4. The Department shall report to the
State Controller on or before May 25 of each year the total amount received for
the benefit of the State of Nevada from the tax upon mineral extraction by
geothermal operations, which equals the product of the net proceeds from those
operations multiplied by the rate of tax ad valorem levied by the State of
Nevada.

NRS 362.170Appropriation to county
of amount of tax, penalties and interest attributable to extractive operations
in county; apportionment by county treasurer; Department to report amount
received as tax upon net proceeds of geothermal resources. [Effective July 1,
2015, if the provisions of Senate Joint Resolution No. 15 (2011) are not
approved and ratified by the voters at the 2014 General Election.]

1. There is hereby appropriated to each
county the total of the amounts obtained by multiplying, for each extractive
operation situated within the county, the net proceeds of that operation and
any royalties paid by that operation, by the combined rate of tax ad valorem,
excluding any rate levied by the State of Nevada, for property at that site,
plus a pro rata share of any penalties and interest collected by the Department
for the late payment of taxes distributed to the county. The Department shall
report to the State Controller on or before May 25 of each year the amount
appropriated to each county, as calculated for each operation from the final
statement made in February of that year for the preceding calendar year. The
State Controller shall distribute all money due to a county on or before May 30
of each year.

2. The county treasurer shall apportion to
each local government or other local entity an amount calculated by:

(a) Determining the total of the amounts obtained
by multiplying, for each extractive operation situated within its jurisdiction,
the net proceeds of that operation and any royalty payments paid by that
operation, by the rate levied on behalf of that local government or other local
entity;

(b) Adding to the amount determined pursuant to
paragraph (a) a pro rata share of any penalties and interest collected by the
Department for the late payment of taxes distributed to that local government
or local entity; and

(c) Subtracting from the amount determined
pursuant to paragraph (b) a commission of 5 percent, of which 3 percent must be
deposited in the county general fund and 2 percent must be accounted for
separately in the account for the acquisition and improvement of technology in
the office of the county assessor created pursuant to NRS 250.085.

3. The amounts apportioned pursuant to
subsection 2, including, without limitation, the amount retained by the county
and excluding the percentage commission, must be applied to the uses for which
each levy was authorized in the same proportion as the rate of each levy bears
to the total rate.

4. The Department shall report to the
State Controller on or before May 25 of each year the amount received as tax
upon the net proceeds of geothermal resources which equals the product of those
net proceeds multiplied by the rate of tax levied ad valorem by the State of
Nevada.

NRS 362.170Appropriation to county
of amount of tax, penalties and interest attributable to extractive operations
in county; apportionment by county treasurer; Department to report amount
received as tax upon mineral extraction by geothermal operations. [Effective
July 1, 2015, if the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

1. There is hereby appropriated to each
county the total of the amounts obtained by multiplying, for each extractive
operation situated within the county, the net proceeds from that operation and
any royalties paid by that operation, by the combined rate of tax ad valorem,
excluding any rate levied by the State of Nevada, for property at the situs of
the operation, plus a pro rata share of any penalties and interest collected by
the Department for the late payment of taxes distributed to the county. The
Department shall report to the State Controller on or before May 25 of each
year the amount appropriated to each county, as calculated for each operation
from the final statement made in February of that year for the preceding
calendar year. The State Controller shall distribute all money due to a county
on or before May 30 of each year.

2. The county treasurer shall apportion to
each local government or other local entity an amount calculated by:

(a) Determining the total of the amounts obtained
by multiplying, for each extractive operation situated within its jurisdiction,
the net proceeds from that operation and any royalties paid by that operation,
by the rate of tax ad valorem levied on behalf of that local government or
other local entity;

(b) Adding to the amount determined pursuant to
paragraph (a) a pro rata share of any penalties and interest collected by the
Department for the late payment of taxes distributed to that local government
or other local entity; and

(c) Subtracting from the amount determined
pursuant to paragraph (b) a commission of 5 percent, of which 3 percent must be
deposited in the county general fund and 2 percent must be accounted for
separately in the account for the acquisition and improvement of technology in
the office of the county assessor created pursuant to NRS 250.085.

3. The amounts apportioned pursuant to
subsection 2, including, without limitation, the amount retained by the county,
but excluding the county’s percentage commission, must be applied to the uses
for which each levy was authorized in the same proportion as the rate of each
levy bears to the total rate.

4. The Department shall report to the
State Controller on or before May 25 of each year the total amount received for
the benefit of the State of Nevada from the tax upon mineral extraction by
geothermal operations, which equals the product of the net proceeds from those
operations multiplied by the rate of tax ad valorem levied by the State of
Nevada.

NRS 362.171Establishment and use of county fund for mitigation and school
district fund for mitigation. [Effective through November 24, 2014, and after
that date unless the provisions of Senate Joint Resolution No. 15 (2011) are
approved and ratified by the voters at the 2014 General Election.]

1. Each county to which money is appropriated
by subsection 1 of NRS 362.170 may set aside a
percentage of that appropriation to establish a county fund for mitigation.
Money from the fund may be appropriated by the board of county commissioners
only to mitigate adverse effects upon the county, or the school district
located in the county, which result from:

(a) A decline in the revenue received by the
county from the tax on the net proceeds of minerals during the 2 fiscal years immediately
preceding the current fiscal year; or

(b) The opening or closing of an extractive
operation from the net proceeds of which revenue has been or is reasonably
expected to be derived pursuant to this chapter.

2. Each school district to which money is
apportioned by a county pursuant to subsection 2 of NRS
362.170 may set aside a percentage of the amount apportioned to establish a
school district fund for mitigation. Except as otherwise provided in subsection
3, money from the fund may be used by the school district only to mitigate
adverse effects upon the school district which result from:

(a) A decline in the revenue received by the
school district from the tax on the net proceeds of minerals;

(b) The opening or closing of an extractive
operation from the net proceeds of which revenue has been or is reasonably
expected to be derived pursuant to this chapter; or

(c) Expenses incurred by the school district
arising from a natural disaster.

3. In addition to the authorized uses for
mitigation set forth in subsection 2, a school district in a county whose
population is less than 4,500 may, as the board of trustees of the school
district determines is necessary, use the money from the fund established
pursuant to subsection 2:

(a) To retire bonds issued by the school district
or any other outstanding obligations of the school district; and

(b) To continue the instructional programs of the
school district or the services and activities that are necessary to support
those instructional programs, which would otherwise be reduced or eliminated if
not for the provisions of this section.

Ê Before
authorizing the expenditure of money pursuant to this subsection, the board of
trustees shall hold at least one public hearing on the matter.

NRS 362.171Establishment and use of
county fund for mitigation and school district fund for mitigation. [Effective
November 25, 2014, if the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]

1. Each county to which money is
appropriated by subsection 1 of NRS 362.170 may set
aside a percentage of that appropriation to establish a county fund for
mitigation. Money from the fund may be appropriated by the board of county
commissioners only to mitigate adverse effects upon the county, or the school
district located in the county, which result from:

(a) A decline in the revenue received by the
county from the tax upon mineral extraction during the 2 fiscal years
immediately preceding the current fiscal year; or

(b) The opening or closing of an extractive
operation from which revenue has been or is reasonably expected to be received
by the county from the tax upon mineral extraction.

2. Each school district to which money is
apportioned by a county pursuant to subsection 2 of NRS
362.170 may set aside a percentage of the amount apportioned to establish a
school district fund for mitigation. Except as otherwise provided in subsection
3, money from the fund may be used by the school district only to mitigate
adverse effects upon the school district which result from:

(a) A decline in the revenue received by the
school district from the tax upon mineral extraction;

(b) The opening or closing of an extractive
operation from which revenue has been or is reasonably expected to be received
by the school district from the tax upon mineral extraction; or

(c) Expenses incurred by the school district
arising from a natural disaster.

3. In addition to the authorized uses for
mitigation set forth in subsection 2, a school district in a county whose
population is less than 4,500 may, as the board of trustees of the school
district determines is necessary, use the money from the fund established
pursuant to subsection 2:

(a) To retire bonds issued by the school district
or any other outstanding obligations of the school district; and

(b) To continue the instructional programs of the
school district or the services and activities that are necessary to support
those instructional programs, which would otherwise be reduced or eliminated if
not for the provisions of this section.

Ê Before
authorizing the expenditure of money pursuant to this subsection, the board of
trustees shall hold at least one public hearing on the matter.

NRS 362.175Procedure for removal of amount of tax and name from records of
Department when tax impossible or impractical to collect. [Effective through
November 24, 2014, and after that date unless the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

1. If at any time, in the opinion of the
Executive Director, it becomes impossible or impractical to collect any tax
certified on the proceeds of minerals extracted, the Executive Director may
apply to the Nevada Tax Commission to have the amount of the tax and the name
of the person against whom the tax is certified removed from the tax records of
the Department.

2. If the Nevada Tax Commission approves
the application, the Department may remove the name and amount from its tax
records.

NRS 362.175Procedure for removal of
amount of unpaid tax and name from records of Department when tax impossible or
impractical to collect. [Effective November 25, 2014, if the provisions of
Senate Joint Resolution No. 15 (2011) are approved and ratified by the voters
at the 2014 General Election.]

1. If at any time, in the opinion of the
Executive Director, it becomes impossible or impractical to collect any unpaid
tax upon mineral extraction or royalties, the Executive Director may apply to
the Nevada Tax Commission to have the amount of the unpaid tax and the name of
the delinquent taxpayer removed from the tax records of the Department.

2. If the Nevada Tax Commission approves
the application, the Department may remove the name and amount from its tax
records.

(Added to NRS by 1960, 84; A 1975, 1678; 1989, 40; 2013, 3133,
effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General Election)

NRS 362.180Burden of proof on taxpayer to show certification by Department
to be unjust, improper or invalid. [Effective through November 24, 2014, and
after that date unless the provisions of Senate Joint Resolution No. 15 (2011)
are approved and ratified by the voters at the 2014 General Election.]In any suit arising concerning the
certification and taxation of the net proceeds of minerals extracted, the
burden of proof is upon the taxpayer to show if the taxpayer so alleges or
contends that the certification by the Department is unjust, improper or
otherwise invalid.

NRS 362.180Burden of proof on
taxpayer to show certification or taxation by Department to be unjust, improper
or invalid. [Effective November 25, 2014, if the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]In any action
arising pursuant to the provisions of NRS 362.100
to 362.240, inclusive, the burden of proof is upon
the taxpayer to show, if the taxpayer so alleges or contends, that any
certification or taxation by the Department is unjust, improper or otherwise
invalid.

NRS 362.200Powers of Department: Examination of records; hearings.
[Effective through November 24, 2014, and after that date unless the provisions
of Senate Joint Resolution No. 15 (2011) are approved and ratified by the
voters at the 2014 General Election.]

1. The Department may examine the records
of any person operating or receiving royalties from any extractive operation in
this state. The records are subject to examination at all times by the
Department or its authorized agents and must remain available for examination
for a period of 4 years from the date of any entry therein.

2. If any person whose gross yield from an
extractive operation as reported to the Department for any annual reporting
period during the 4 years immediately preceding the examination was $100,000 or
more keeps his or her books and records pertaining to that operation or royalties
outside this state, the person shall pay an amount per day equal to the amount
set by law for out-of-state travel for each day or fraction thereof during
which an examiner is actually engaged in examining the books, plus the actual
expenses of that examiner during the time he or she is absent from Carson City,
Nevada, for the purpose of making the examination, but the time must not exceed
1 day going to and 1 day coming from the place of examination. No more than one
examination may be charged against a person in any 1 fiscal year.

3. The Department may hold hearings and
summon and subpoena witnesses to appear and testify upon any subject material
to the determination of the net proceeds of minerals extracted. The hearings
may be held at any place the Department designates, after not less than 10
days’ notice of the time and place of the hearing given in writing to the owner
or operator of the mine. The owner or operator is entitled, on request made to
the Executive Director, to the issuance of the Department’s subpoena requiring
witnesses in behalf of the owner or operator to appear and testify at such
hearing.

4. The failure of a witness to obey the
subpoena of the Department subjects the witness to the same penalties
prescribed by law for failure to obey a subpoena of a district court.

NRS 362.200Powers of Department:
Examination of records; hearings. [Effective November 25, 2014, if the
provisions of Senate Joint Resolution No. 15 (2011) are approved and ratified
by the voters at the 2014 General Election.]

1. The Department may examine the records
of any person who engages in mineral extraction or receives royalties from any
extractive operation. The records are subject to examination at all times by
the Department or its authorized agents and must remain available for
examination for a period of 4 years from the date of any entry therein.

2. If the Department examines the records
of any person whose gross yield from an extractive operation was $100,000 or
more, as reported to the Department for any annual reporting period during the
4 years immediately preceding the examination, and the person keeps his or her
records pertaining to that operation or royalties outside this state, the
person shall pay an amount per day equal to the amount set by law for
out-of-state travel for each day or fraction thereof during which an examiner
is actually engaged in examining the records, plus the actual expenses of that
examiner during the time he or she is absent from Carson City, Nevada, for the
purpose of making the examination, but the time must not exceed 1 day going to
and 1 day coming from the place of examination. No more than one examination
may be charged against a person in any 1 fiscal year.

3. The Department may hold hearings and
summon and subpoena witnesses to appear and testify upon any subject material
to any certification or taxation by the Department pursuant to the provisions
of NRS 362.100 to 362.240,
inclusive. The hearings may be held at any place the Department designates,
after not less than 10 days’ notice of the time and place of the hearing given
in writing to the taxpayer. The taxpayer is entitled, on request made to the
Executive Director, to the issuance of the Department’s subpoena requiring
witnesses in behalf of the taxpayer to appear and testify at such hearing.

4. The failure of a witness to obey the
subpoena of the Department subjects the witness to the same penalties
prescribed by law for failure to obey a subpoena of a district court.

NRS 362.230Penalty for failure to file statements. [Effective through
November 24, 2014, and after that date unless the provisions of Senate Joint
Resolution No. 15 (2011) are approved and ratified by the voters at the 2014
General Election.]

1. Every person extracting any mineral in
this state, or receiving a royalty in connection therewith, who fails to file
with the Department the statements provided for in NRS
362.100 to 362.240, inclusive, during the time
and in the manner provided for in NRS 362.100 to 362.240, inclusive, shall pay a penalty of not more
than $5,000. If any such person fails to file the statement, the Department may
ascertain and certify the net proceeds of the minerals extracted or the value
of the royalty from all data and information obtainable, and the amount of the
tax due must be computed on the basis of the amount due so ascertained and
certified.

2. The Executive Director shall determine
the amount of the penalty. This penalty becomes a debt due the State of Nevada
and, upon collection, must be deposited in the State Treasury to the credit of
the State General Fund.

3. Any person extracting any mineral or
receiving a royalty may appeal from the imposition of the penalty to the Nevada
Tax Commission by filing a notice of appeal in accordance with the requirements
set forth in NRS 360.245.

NRS 362.230Penalty for failure to
file statements. [Effective November 25, 2014, if the provisions of Senate
Joint Resolution No. 15 (2011) are approved and ratified by the voters at the
2014 General Election.]

1. If any person engages in mineral
extraction or receives royalties from any extractive operation and fails to
file with the Department a statement required by NRS
362.100 to 362.240, inclusive, during the time
and in the manner required by those sections:

(a) The person shall pay a penalty of not more
than $5,000 for each such violation; and

(b) The Department may ascertain and certify the
amount of the gross yield, net proceeds and royalties received from the
extractive operation from all data and information obtainable, and the amount
of the tax due must be computed on the basis of the amounts so ascertained and
certified by the Department.

2. The Executive Director shall determine
the amount of the penalty imposed against the person, and the penalty becomes a
debt due the State of Nevada.

3. Any person against whom a penalty is
imposed pursuant to this section may appeal from the imposition of the penalty
to the Nevada Tax Commission by filing a notice of appeal in accordance with
the requirements set forth in NRS 360.245.

NRS 362.240Penalty for false statements. [Effective through November 24,
2014, and after that date unless the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General
Election.]Any person who verifies
under oath to the truthfulness of a statement required by NRS 362.100 to 362.240,
inclusive, that is false in any material respect shall be liable to a penalty
of not more than 15 percent of the tax as determined by the Executive Director
after reasonable notice and hearing.

[8:77:1927; NCL § 6585]—(NRS A 1975, 1680)

NRS 362.240Penalty for false
statements. [Effective November 25, 2014, if the provisions of Senate Joint Resolution
No. 15 (2011) are approved and ratified by the voters at the 2014 General
Election.]

1. If any person verifies under oath to
the truthfulness of a statement required by NRS 362.100
to 362.240, inclusive, that is false in any
material respect, the person shall pay a penalty of not more than 15 percent of
the amount of the tax due as a result of the violation.

2. The Executive Director shall determine
the amount of the penalty imposed against the person, and the penalty becomes a
debt due the State of Nevada.

3. Any person against whom a penalty is
imposed pursuant to this section may appeal from the imposition of the penalty
to the Nevada Tax Commission by filing a notice of appeal in accordance with
the requirements set forth in NRS 360.245.

[8:77:1927; NCL § 6585]—(NRS A 1975, 1680; 2013, 3134,
effective November 25, 2014, if the provisions of Senate Joint Resolution No.
15 (2011) are approved and ratified by the voters at the 2014 General Election)